Q1. Discuss the need of ERP in Retail Enterprises with example.Ans:Need of ERP in Retail Enterprises:Enterprise Resource Planning
systems or the ERP systems refer to thesoftware packages that integrate all the data and the related processes of anorganization into a unified Information System (IS). An ERP system uses acentral database that holds all the data relating to the various systemmodules. In order to achieve a seamless integration, an ERP system usesmultiple hardware and software components. ERP packages are heavily usedby
larger retail chains
. Designed to facilitate the administration andoptimization of internal business processes across an enterprise, ERPpackages have become the competitive tool for
most large retailorganizations.
ERP software uses a single database that allows the differentdepartments to communicate with each other through information sharing.ERP systems comprise function-specific components that are designed tointeract with the other modules such as the Order Entry, Accounts Payable,Accounts Receivable, Purchasing, Distribution etc.
It comprise of different modules such as order entry, purchase, sales,finances, inventory management, DRP (Distribution Resource Planning) andhuman resources. The components are designed to work effortlessly with therest of the system and provide a consistent user interface throughout thesystem.
Challenges to the Retail Enterprises:
1.Market competition2.Regulatory pressures
Problems with Enterprise Applications in the Retail sector:
1.Outdated architecture2.Limited scope3.High maintenance costs4.Integration and scalability problems